Brooklyn’s housing market is so through the roof that families are forking over $625,000 to live next door to one of the city’s most dangerous housing projects, The Post has learned.

A new community called Spring Creek Estates, which will feature 40 two-family luxury homes, is in the process of being built along weed-strewn lots in East New York near the infamous, crime-laden Louis H. Pink Houses.

The first five houses are already up on Pine Street and recently sold for between $479,000 and $579,000, brokers said. And with marketing for the next 10 homes under way, two families have already signed contracts to pay $625,000 without a shovel hitting the dirt.

“Everybody knows about the reputation of the Pink Houses, but we’ve had no problem marketing the new development,” said Cecilia Calcagnile, a Centruy 21 broker arranging the sales. “We’ve had phone calls off the hook and are selling houses right off the blueprints before we even break ground.”

The 4-acre Spring Creek Estates is expected to be complete by 2008. It will run along parts of Stanley, Worthman and Euclid avenues and Crescent and Pine streets in one of the city’s highest crime areas.

Despite seeing a 57 percent drop in crime the past decade, the 75th Precinct last year led all police precincts in the number of murders (29) and ranked third out of 76 in the number of reported crimes (3,479).

Gene Moore, economic-development manager for the East New York Local Development Corp., said having market-rate housing go up next to the Pink Houses “is testimony to the revitalization of the neighborhood.”

The $20 million project hits home especially for its developer, Frank Paladino, of Manhattan.

Paladino, 59, grew up on Pine Street when the area was mostly farmland and dirt roads. Despite moving out in 1983, he said he never lost faith in East New York and continued to operate his construction business there – even as junkies, thugs and other undesirables began flooding the area.

Paladino over the years bought up properties, hoping one day he would be in position to assist in an area renaissance. Now, Paladino said, he and the neighborhood are profiting from his patience.

The project is receiving most interest from middle-class minority families, Calcagnile said.

Geanan Fearon, a 27-year-old administrative assistant, and her two young children were among the first to move in. She said it was a no-brainer to go from renting an apartment in Flatbush to owning a home in East New York.

“The people have been very friendly here, and the neighborhood doesn’t have all the blight that people make it out to have,” Fearon said.